Wall Street Surges On Rates Optimism

Wall Street ended sharply higher on Wednesday after US Federal Reserve Chair Jerome Powell signaled the central bank would likely raise interest rates less than some investors had feared.

Powell's comments, in testimony to the US House of Representatives Financial Services Committee, helped calm investors after Russia's military operation in Ukraine sent markets into a tailspin.

Powell said he is inclined to support a 25 basis point rate hike in March, quelling some concerns about the potential for a more aggressive rate hike.

Traders now see a 95 percent probability of a 25 basis point hike in March.

Russia's week-old incursion has yet to achieve its aim of overthrowing Ukraine's government. Ukrainians said they were battling on in the port of Kherson, the first sizeable city Russia claimed to have seized, while air strikes and bombardment caused further devastation in other cities.

"From day to day you go from the fear of escalation that could make things very bad to the hope that it will not really happen and that cooler heads will prevail, and that the economy is strong enough to get through this," said Tom Martin, senior portfolio manager at GLOBALT Investments in Atlanta.

Apple ended 2.1 percent higher after announcing a product launch for March 8, when it is expected to promote a low-cost version of its popular iPhone with 5G.

The Dow Jones Industrial Average rose 1.79 percent to end at 33,891 points, while the S&P 500 gained 1.86 percent to 4,387.

The Nasdaq Composite climbed 1.62 percent to 13,752.

Nordstrom Inc surged 38 percent after the department store chain forecast upbeat full-year revenue and profit. (Reuters)